Using the Aging-Of-Accounts-Receivable Method to Estimate Uncollectible Receivables,CMU Corporation Estimates

question 142

Multiple Choice

Using the aging-of-accounts-receivable method to estimate uncollectible receivables,CMU Corporation estimates that $3,750 of its accounts receivable will be uncollectible.Prior to adjustment,the Allowance for Uncollectible Accounts has a credit balance of $600.Bad debt expense to be reported on the income statement is:

• A) $4,350
• B) $3,750
• C) $3,150
• D) $600

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